Los Angeles daily herald., 1887-06-15


wheat clique to-day and The muc
vaunted Combine" is smashed. Th
wheat pit was in panic for an hour
June option dropped from 924 to 727
1t is the most sensational collapse seei
in this market in its history. Th
10, ,0o0,000 bushels of grain collecte,
here and held by my sterious com bina
ton, of which nobody knew anythin.
to any certainty, will now be sold on
''under the hammer"
CAUGHT MAPPING.
Maurice Rosenfeld h Co., one of th,
most prominent of the clique's broker
age houses, have announced their sus.
pension. Their losses on the decline
are estimated at half million dollars.
kershaw 4 Co., who are recognized as
the leading clique brokers, sent in a
communication TO Secretary Stone, ol
the Board of Trade, stating that they
would have plenty of money by to-nfor-
row, and requesting all houses to keep
their trades with them open.
INVITATIONS OF TIE TROUBLE.
The first intimation of any trouble in
the wheat deal appeared the day before
yes eroay, when July peg" at S5k was
broken through. That let July down SO
far that the marginal price for June,
which was kept at 92I, was inevitable.
There have been few who claimed that
this wheat corner was manipulated by
the malodorous Harper who repudiated
his losses made in 1881.
CLOSING STATEMENTS.
The closing prices are, wheat, irregu-
lar; cash, 74s; July, 75s; August, 764.
1t has just been announced that the
commission firms of Hamill & Bride and
+. w. Berry have supended.
OHIO MEN INTERESTED.
CINCINNATI, June IA very gen.
eral impression that Cincinnati fur
nished q large part of the clique which
was charged with managing the Chicago
wheat deal turned attention in this di.
rection to-day, when the panic 10 wheat
in Chicago developed very strongly.
FAILURES AT MILWAUKEE.
MILWAUKEE, June lathe announce.
ment of sudden drop in wheat in the
leading grain centers caused intense ex-
citement here. Three failures have
been announced, viz: Frank Wilson,
J Joseph Wilds and Hill, Fleifzheim &
Co., the latter being the Milwaukee
branch of the house Of c. j. Kershaw
& Co., of Chicago. Hooker, Crittende
Il Co. closed out all their trades, and
their failure depends on the ability of
the Kershaw crowd to meet all their OBJ.
legations.
NEW YORK REPORTS.
New YORK, June I4.-As a result Of
the heavy decline at the West, the local
wheat market suffered bad break, and
there was considerable excitement and
pressure to sell. Wheat is nervous,
there being an extreme decline of 4 lc on
July. June comes next with break of
Sc, and in off months an irregular decline
of l@lac. Option dealings reached
nearly 10000 bushels, the largest ever
recorded.
ON THE ST. LOUIS CHANGE.
ST. LOUIS, June l4.-There was a
good deal of excitement on Change to.
day over the great tumble in the price
of wheat in Chicago, especially as the
crowd have been and are still very
bearish and have been playing short
side bo h here and in Chicago. Pri-
vate messages laid the break to an un-
satisfactory interview between Wiltshire
and the brokers at Chicago last night,
and to the report that the Boards attor.
ney had rendered a decision that wheat
in cars on the side track and in vessels in
the harbor was regular. AS the break
progressed in Chicago very heavy Offer
ings were made here, but there was
also active buying by the shorts. The
decline, therefore, was not great, being
less than cents, with slight recovery
at the close. Most of the traders here
being bears, are credited with making
profits ont of the break, some of them
being very handsome sums, but the
probabilities are that no great sum has
either been lost or won.
ON THE WINNING SIDE.
Only a few were heavy dealers, but
the crowd generally was on the winning
side, and every announcement of fur
ther break was greeted with applause
and was taken as so much to theiI
credit.
To-day, throughout both sessions. the
pit was in good working condition, there
being plenty of room to move about and
the traders could enter their trades OIL
their cards without jostling and pushing
For some time this could not be ex-
planned until it was shown that the
changes in the market could be known
in any part of the pit or room by simply
watching the indicators on the gallery
thus relieving the actual traders from
the presence of excited crowds WHIT
simply wanted to follow the course o
the tide.
THE BANKS sAEE.
When Lyman Gage, President of tn
First National Bank, was asked as tt
the possible effect of the break in whea
upon the banks of the city, he remarked
that it would not have any serious effect
because loans made by banks on grail
were always made with margins larg,
enough to make them always secure
For that reason any unfavorable effec
from the banks would be slight indeed
Similar view were expressed at th
other banks. President Walsh, O
the Chicago National adding that on
result would be release of quantity 0
the money that had been tied up i
wheat. 1t is generally understood tha
the local banks have been loaning mone
freely to the clique operators npon whea
at 20 cents per bushel, believing tha
figure to be far below the active value {
wheat. At close of the afternoon ses
sion of the Board of Trade to-day, th
following announcement was made:
"Gentlemen: We have assurances Z
ample funds to meet all calls upon us b
to. morrow morning and request that n
trades with us be closed out, respect
fully, G. j. Kershaw u Co."
This firm will be recognized as th
leading brokers for the clique. Th
announcement did much to strengthe
the feeling at close of the Change, an
it is believed that the banks, in order
protect themselves, have come to Il
assistance Of Kershaw in order to pr